Remarks by the President to the Greater Manchester Chamber of Commerce
New Hampshire Holiday Inn-Center of New Hampshire
Manchester, New Hampshire

12:15 P.M. EDT

THE PRESIDENT: Thanks for the warm welcome. It's good to be back
in New Hampshire again. I've spent some quality time here.
(Laughter.) It's good to see many of our friends. It seems like
Manchester is a popular destination place these days -- (laughter) --
not just because the leaves are changing. (Laughter.) This city was
the scene of my first great victory in 2000, the perfect flip at the
Presidential Pancake Flip-off. (Laughter and applause.) I would
suggest some of our other fellow Americans practice. (Laughter.)

I want to thank the Chamber and the Business Industry Association
for inviting me here today to talk about two great priorities of our
country: to create jobs for America, and to win the war on terror. I
wish Laura was with me today. She sends her best wishes. You might
remember that she has recently been on a diplomatic mission. She went
to Russia. And she was in France. Perhaps you saw the picture --
(laughter) of her in France. (Laughter.) Last time I was in France, I
got a nice welcome, but nothing like that. (Laughter.) She's such
great representative for our country. I'm really proud to call her,
wife. I love her dearly. (Applause.)

I want to thank Raymond for his kind introduction. I appreciate
Harold Turner, as well, for letting me come. Thank you all for
coming. I traveled from Pease Air Force Base with your fine Governor
and First Lady, Denise. Craig, I'm proud to call you friend. Thank
you for serving your great state. (Applause.) I'm also here with --
my buddy Judd Gregg and his wife, Kathy. Don't mess with Kathy.
(Laughter.)

I'm also honored to be here with a fine United States Senator, John
Sununu. I appreciate you coming, John. (Applause.) Congressman
Charlie Bass and Jeb Bradley flew down from Washington with me today.
(Applause.) I know the Mayor of Manchester and the Mayor of Nashua are
here with us today. I'm honored you are here. Members of the
executive council are here, state representatives are here, state
senators are here. The Attorney General is here. There are a lot of
people here that I need to thank. I appreciate you coming and giving
me a chance to visit with you.

When I landed today in Manchester, I met a fellow named Robert
Perkins. He is one of the thousands of citizens who volunteer in your
state. I like to point out people like Robert Perkins, because it
gives me a chance to remind our fellow citizens that our true strength
is not our military might. Our true strength is not the size of our
wallet, the strength of this country is the heart and soul of fellow
citizens who are willing to love a neighbor just like they'd like to be
loved themselves.

Robert Perkins volunteers at the Boys and Girls Club here in
Manchester. He helped create the chapter in 1995. He has dedicated
five to 10 hours each week over the past five years. My call to our
citizens is, in order to make America as hopeful and promising a place
as possible, help somebody who hurts. Put your arm around somebody in
need. And for those of you who already do so, like Robert Perkins,
thank you for being patriots. (Applause.)

Since I was last here, New Hampshire lost one of its finest
citizens, Governor Hugh Gregg. He loved his country, and he served it
well. He loved this state, and he believed in the common sense and
wisdom of its people. This tradition continues in his good family. We
honor Hugh Gregg's memory, and my family was proud to be his friend.
(Applause.)

I began my visit this morning at Pease, with the New Hampshire Army
and Air Guardsmen and reservists from every branch of our military. New
Hampshire guardsmen have served on every front of the war on terror,
from Afghanistan to Iraq, to protecting our homeland, to guarding the
detainees at Guantanamo Bay. I went to tell them how much I appreciated
the fact that they are showing what it means to be patriots and
citizens. I told them that our country is grateful for their service.

America is being tested. We're being tested abroad and we are
being tested here at home. And we're meeting the tests of history.
We're defeating the enemies of freedom. And at the same time, we're
confronting challenges to build the prosperity of our nation. Every
test of America has revealed the character of America. After two
years, no one in the world -- friend or foe -- can doubt the strength
or the will of the American people. (Applause.)

When you become the President, you can't predict all the challenges
that will come. But you do know the principles you bring to office --
and they should not change. They shouldn't change with time and they
shouldn't change with polls. I took this office to make a difference,
not to mark time. I came to this office to confront problems directly
and forcefully, not to pass them on to future Presidents and future
generations. (Applause.)

The challenges we face today cannot be met with timid actions or
bitter words. Our challenges will be overcome with optimism and resolve
and confidence in the ideals of our country.

Because we believe in our free enterprise system, we can be
confident in our economy's future. Our economy has been through a lot,
been through some tough times. When I took office, the stock market
had been declining for nine months, and the economy was headed into a
recession. And just as we started to recover, the attacked us on
September the 11th. And that struck a blow to our economy. And then
investor confidence was shaken by scandals in corporate America --
dishonest behavior we cannot and we will not tolerate in our America.
(Applause.) And then we faced the uncertainty that preceded the
battles of Afghanistan and Iraq.

We have acted to overcome all these challenges, and have acted on
principle. See, government doesn't create wealth. The role of
government is to create the conditions where risk-takers and
entrepreneurs can invest and grow and therefore hire new workers. I've
acted to create the conditions for job growth. See, I understand that
when Americans have more take-home pay to spend, to save, or invest,
the whole economy grows, and someone is more likely to find a job.

And so I twice led the United States Congress to pass historic tax
relief for the American people. We wanted tax relief to be as broad
and as fair as possible, so we reduced taxes on everyone who pays
taxes. I don't think it makes sense to penalize marriage in the tax
code. We want to reward and honor marriage. And so we reduced the
marriage penalty. We understand it takes a lot of -- to raise a family
and to educate a child, so we increased the child credit to $1,000.
This summer I said the check would be in the mail, and it was.

It's counterproductive to discourage investment, especially during
an economic recovery. So we quadrupled the expense deduction for small
business investment, and cut tax rates on dividends and capital gains.
It is unfair to tax the estates people leave behind after a lifetime of
saving and building up their business or running the family farm. When
you leave the world, the IRS shouldn't follow you. So we're phasing
out the federal death tax. (Applause.)

I proposed and signed these measures to help individuals and
families, but also know the effect it would have on small businesses.
See, most small businesses in America pay taxes under the individual
income tax rates. Most small businesses are sole proprietorships or
Sub Chapter S corporations. And when you couple that with the higher
expense deductions, we've really put the wind under the sails of small
businesses. And that's important, because small businesses create most
new jobs in our country. They're usually the first to take risks and
the first to hire new people. The tax relief plan we passed helps
small businesses, which helps economic growth, which means it's more
likely somebody is going to find a job. (Applause.)

The actions we're taking are helping people. We've cut the taxes
on 112,000 small business owners in New Hampshire. We've reduced the
marriage penalty for 192,000 couples. We've increased the child tax
credit for 124,000 families. I understand this, that New Hampshire
citizens can better spend their own money than the people in
Washington. (Applause.)

We're following a clear and consistent economic strategy, and I'm
confident about the future of this country. Last month the economy
exceeded expectations and added net new jobs. Inflation is low.
After-tax incomes are rising. Home ownership is at record levels.
Productivity is high and it is rising. Factory orders, particularly for
high-tech equipment, have risen over the last several months. Our
strategy has set the stage for sustained growth. By reducing taxes, we
kept a promise, and we did the right thing at the right time for the
American economy. (Applause.)

Just as our economy is coming around, some are saying now is the
time to raise taxes. To be fair, they think any time is a good time to
raise taxes. (Laughter.) At lest they're consistent. But I strongly
disagree. (Applause.) A nation cannot tax its way to growth or job
creation. Tax relief has put this nation on the right path, and I
intend to keep this nation on the path to prosperity. (Applause.)

We are moving forward, but we cannot be satisfied. We can't be
satisfied, so long as we have fellow citizens who are looking for
work. Here in New Hampshire, one out of every five jobs that have been
lost are manufacturing jobs. And that's a problem. I believe we must
act boldly to stem the tide of job loss. So I'm asking Congress to
join me in carrying out a six-point plan for jobs for America.

Businesses are more likely to hire people if the health care for
workers is affordable. We need to allow association health care plans,
where small businesses can pool risk and gain the same bargaining power
as big businesses. And in order to control health care costs, we need
effective legal reform, medical liability reform at the federal level.
(Applause.)

Defensive medicine against frivolous lawsuits runs up the federal
budgets, it increases the cost of Medicare and Medicaid and veteran
health benefits. Medical liability reform is a national problem that
requires a national solution. The House has passed a good bill. It is
stuck in the Senate. Senators must understand no one has been healed
by a frivolous lawsuit in America. (Applause.)

Unfair lawsuits are also harming a lot of good and honest
employers. There are too many large settlements that leave plaintiffs
with a small sum and lawyers with a fortune. Class actions and mass
tort suits that reach across state lines should be tried in a federal
court so lawyers cannot shop around looking for a favorable judge. And
most of the money in a judgment or settlement should go to those who
have actually been harmed, not the lawyer. A good bill has passed the
House. It is stuck in the Senate. We need class action tort reform
out of the United States Senate. (Applause.)

Our economy will grow stronger and create more jobs if we have a
sound national energy policy. The manufacturing sector of New
Hampshire and around our country need reliable sources of energy. We
need better infrastructure. We need to modernize the delivery of
electricity and natural gas so cities and businesses and employers are
not left in the dark.

We'll continue to give low-income people help with their fuel bills
this winter. We must use our technology to develop plain and efficient
energy sources so we can sustain economic growth and protect the
environment. We need more energy production close to home. For the
sake of national security, and for the sake of economic security,
America must be less dependent on foreign sources of energy.
(Applause.)

We passed a good bill out of the House and the Senate. They must
come together and get a bill to my desk before they go home for
Christmas. Most people will find jobs when employers don't have to
waste time and resources complying with needless government
regulations. For the sake of American workers, we're cutting
unnecessary rules and making some of the rules still on the books
simpler to understand. This administration understands that small
business owners should spend more time building companies and pleasing
customers, and less time filling out the endless forms the federal
government requires.

To create jobs, we are pursuing free trade agreements that will
open up markets for New Hampshire products. Last month, I signed trade
agreements with Singapore and Chile, and we are working toward other
free trade agreements across the globe. Expanded trade will help New
Hampshire companies like Len-Tex and Warwick Mills and Tender to sell
more goods, which will mean more jobs and better jobs for New Hampshire
workers. I will insist that for free -- not only will we have free
trade, but that there be a level playing field, that the people with
whom we trade treat America fairly. I firmly believe that when the
rules are fair, American workers and entrepreneurs can compete with
anybody, anyplace, and anytime. (Applause.)

There is one more thing we need to do. We need to make sure that
all the tax relief we have passed doesn't disappear in future years.
See, there's a quirk in the legislation. The tax cuts that we passed
are scheduled to go away unless we act. The child credit will drop in
several years. The death tax that we put to extinction will pop back
up ten years after enactment. In other words, there's uncertainty in
the tax code. See, Americans hear about tax relief. They don't expect
to see higher taxes sneak through the back door. For the sake of job
creation, for the sake of people looking for work, the United States
Congress should make every one of the tax cuts we passed permanent.
(Applause.)

We have a responsibility to set good policies in Washington, and we
are. Yet the real strength is found in the creativity and the
entrepreneurial spirit of the American people. The entrepreneurial
spirit is strong in this country. It's one of the great -- great
aspects of our national character. And that's why I'm so confident
about the future of our economy.

Brain Stowell is here. He's a second-generation entrepreneur based
in Claremont, New Hampshire. I met Brian backstage. His family owned
a cabinet-making company called Crown Point Cabinentry, which started
by his dad, Norm, in a garage, 25 years ago. Brian said, if you talk
about him, make sure you talk about my dad, Norm.

Now that business employs 90 people. From the garage to now being
an employer of 90 people, that's what America is all about. This year,
four -- this week, Brian added four new workers. Most new jobs in
America are created by small business owners. In the next
two-and-a-half years, he plans on adding 25 workers. Folks working now
not only know they'll have a job, but they're about to be joined by
other working with them.

He says the tax cuts helped a lot. That's his words, not mine.
Because of tax relief, he's putting more than $800,000 of his company's
money at work in new equipment. See, he's made a decision. Tax relief,
it creates demand. In a market-oriented economy, when there's more
demand, somebody meets that demand with a service or a product. And
when somebody meets that demand with a service or a product, somebody
is more likely to find work.

He's going to buy a new router, made in North Carolina. There's a
router worker who's going to be a -- benefit from his decision caused
by tax relief. He's going to buy a sander made in Minnesota, spray
booths made just outside of Boston, Massachusetts, a forklift made in
Iowa, more than a dozen other pieces of equipment, nearly all of them
made here in America. The tax relief encouraged Brian to make an
investment. And when he makes an investment, not only will it help his
company be more productive, the people who are making the equipment for
Brian to purchase are more likely to find work and keep work.

He's an optimist. He's an optimist because he believes in the
people in this country. Here's what he said. He said, "After
September the 11th, everybody collectively held their breath, but our
confidence has grown. We've turned a corner." Confidence like that is
well-founded. We live in a country that rewards big dreams and honest
effort. My job is to keep the entrepreneurial spirit alive and well.
It's through good policy in Washington, D.C. (Applause.)

As we overcome challenges to our economy, we are also answering
great threats to our security. September the 11th, 2001 moved our
country to grief, and moved our country to action. We made a pledge
that day, and we have kept it. We're bringing the guilty to justice,
we're taking the fight to the enemy. And we now see that enemy very
clearly. The terrorists plot in secret. They kill the innocent. They
defile a great religion. And they hate everything America stands for.
These committed killers will not be stopped by negotiations, they won't
respond to therapy, or to reason. The terrorists who threaten America
cannot be appeased. They must be found, they must be fought, and they
must be defeated. (Applause.)

We are in a different kind of war than we're used to. We're in a
new war, and it requires a new strategy. We're not waiting for further
attacks. We're striking our enemies before they can strike us again.
We've taken unprecedented steps to protect our homeland, yet wars are
won on the offensive. And America and our friends are staying on the
offensive. (Applause.)

We are rolling back the terrorist threat, not on the fringes of its
influence, but at the heart of its power. We're making good progress.
We're hunting the al Qaeda terrorists and their allies wherever they
hide, from Pakistan, to the Philippines, to the Horn of Africa, to
Iraq. Nearly two-thirds of al Qaeda's known leaders have been captured
or killed. Our resolve is firm and clear: No matter how long it
takes, all who plot against America will face the justice of America.
(Applause.)

We have sent a message understood throughout the world: If you
harbor a terrorist, if you support a terrorist, if you feed a
terrorist, you're just as guilty as the terrorists. And the Taliban
found out what we meant. Thanks to our great military, Afghanistan is
no longer a safe haven for terror. Afghanistan is free. Many young
girls now go to the school for the first time in Afghanistan, and the
people of America are safer from attack.

And we fought the war on terror in Iraq. The regime of Saddam
Hussein possessed and used weapons of mass destruction. He sponsored
terrorist groups, inflicted incredible terror on his own people.
Nearly every nation, every nation, recognized and denounced this threat
for over 10 years. The U.N. Security Council, in Resolution 1441,
demanded that Saddam Hussein disarm, to prove his disarmament to the
world, or face serious consequences. The choice was up to the
dictator. He chose poorly.

I acted because I was not about to leave the security of the
American people in the hands of a madman. I was not about to stand by
and wait and trust in the sanity and restraint of Saddam Hussein. So
in one of the swiftest and most humane military campaigns in history,
we removed the threat. Six months ago today, the statue of the
dictator was pulled down. (Applause.)

Since the liberation of Iraq, our investigators have found evidence
of a clandestine network of biological laboratories, advance design
work on prohibited longer-range missiles, an elaborate campaign to hide
illegal weapons programs. There's still much to investigate. Yet it
is undeniable, undeniable, that Saddam Hussein was in clear violation
of the United Nations Security Council Resolution 1441. It's
undeniable that Saddam Hussein was a deceiver and a danger. The
Security Council was right to demand that Saddam disarm, and we were
right to enforce that demand. (Applause.)

Who can possibly think that the world would be better off with
Saddam Hussein still in power; surely not the dissidents who would be
in his prisons or end up in his mass graves; surely not the men and
women who would fill Saddam's torture chambers or rape rooms; surely
not the families of victims he murdered with poison gas; surely not
anyone who cares about human rights and democracy and stability in the
Middle East. There's only one decent and humane reaction to the fall
of Saddam Hussein: Good riddance. (Applause.)

Our country faces a choice. After all the action we have taken,
after all the progress we have made against terror, there is a
temptation to think that danger has passed. The danger hasn't passed.
Since September the 11th, since that fateful day here in America, the
terrorists have taken lives in Casablanca, Mombasa, Jerusalem, Amman,
Riyadh, Baghdad, Karachi, New Delhi, Bali, and Jakarta. The terrorists
continue to plot. They continue to plan against our country and our
people. America must never forget the lessons of September the 11th.
(Applause.)

America cannot retreat from our responsibilities and hope for the
best. Our security will not be gained by timid measures. Our security
requires constant vigilance and decisive action. I believe America has
only one option. We must fight this war until our work is done.
(Applause.)

We're fighting the war on terror on many fronts, and Iraq is now
the central front. Saddam holdouts and foreign terrorists are trying
desperately, desperately, to undermine Iraq's progress and throw the
country into chaos. Terrorists in Iraq believe their attacks on
innocent people will weaken our resolve. That's what they believe.
They believe we'll run from a challenge. They're mistaken. Americans
are not the running kind.

The United States did not run from Germany and Japan following
World War II. We helped those nations to become strong and decent and
democratic societies that no longer wage war against America. And this
is our mission in Iraq. We're rebuilding schools; we're rebuilding
hospitals. Thousands of young kids have received immunizations
recently. We're returning electricity and water to the good people of
that country.

We have pride in this help not only because our hearts are good,
because our vision is clear. A stable and democratic and hopeful Iraq
will no longer be a breeding ground for terror and tyranny and
aggression. Free nations are peaceful nations. Our work in Iraq is
essential to our own security. And no band of murderers and gangsters
will stop that work or shake the will of America. (Applause.)

Nearly every day, we're launching swift precision raids against the
enemies of peace. Helped by intelligence from the Iraqis, we're
rounding up the enemy and taking their weapons. We're working our way
through the famous deck of cards. We've already captured or killed 43
of the 55 most wanted former Iraqi leaders. The other 12 have a lot to
worry about. Anyone who seeks to harm our soldiers can know that our
soldiers are hunting for them. Our military is serving with great
courage. Some of the best have fallen. We mourn every loss. We honor
every name. We grieve with every family. And we'll always be grateful
that liberty has found such brave defenders. (Applause.)

In defending liberty, we are joined by more than 30 nations now
contributing military forces in Iraq. Great Britain and Poland are
leading two multinational divisions. And in this cause with fine
allies must be included the good people of Iraq. They want a peaceful
country. They want security for their families.

Last week, the first battalion of the new Iraqi army completed its
training. Within a year, Iraq will have 40,000 members in their
military force. Tens of thousands of Iraqi citizens are guarding their
own borders and defending vital facilities and policing their own
streets. We're making good progress in Iraq. Six months ago, the
Iraqi people welcomed their liberation, six short months ago. And
today, many Iraqis are armed and trained to defend their own liberty.

Our goal in Iraq is to leave behind a stable and self-governing
society which will no longer be a threat to the Middle East or to the
United States of America. We're following an orderly plan to reach
this goal. Iraq now has a Governing Council which has appointed
interim government ministers. Once a constitution has been written,
Iraq will move toward national elections. We want this process to go
as quickly as possible. Yet, it must be done right.

The free institutions of Iraq must stand the test of time. And a
democratic Iraq will stand as an example to all the Middle East. I
believe, and the Iraqi people will show, that liberty is the hope and
the right of every land. I do not believe freedom -- I do not believe
freedom is America's gift to the world. Freedom is God's gift to every
individual in the world. (Applause.)

Our work in Iraq has been long and hard, and it is not finished.
We will stay the course, we will complete the task. And beyond Iraq,
the war on terror continues. There will be no quick victory in the war
on terror, but if we persevere, victory is certain.

I'm confident of victory because I know the character of our
country and our military, shown in the conduct of young men like Army
Sergeant Matthew DeWitt, of Hillsboro, New Hampshire. While serving in
Iraq, Sergeant DeWitt stepped forward to volunteer on a dangerous
mission to root out Saddam loyalists. In the fighting, he was
seriously wounded. He's now receiving care at the Walter Reed Army
Medical Center in Washington, D.C. I was honored to visit him. He was
awarded the Purple Heart. He doesn't consider himself a hero. He just
says, "I was just doing my job." Yet it is great people like this
26-year old from New Hampshire who protect us. We count on them, and
we're proud of them. (Applause.)

The war on terror has brought hardship and loss to our country,
beginning with the grief of September the 11th. Let us also remember
that the first victory in this war on terror came that same day on a
hijacked plane bound for the nation's capital. Those men and women on
flight 93, knowing they would die, found the courage to use their final
moments to save the lives of others. In those moments, and many times
since, terrorists have learned about the courage of America, and that
we will not be intimidated. We will fight them with everything we
have. (Applause.)

Few of us are called to show the kind of valor seen on flight 93 or
on the field of battle. Yet all of us share a calling, to be strong in
adversity and unafraid of danger. We Americans have come through so
much together, yet there is a lot to do. And if we're patient and
united and determined, this nation will not only prosper, this nation
will be secure as we prevail in the war against terror.

Thank you for letting me come today, and may God bless you.
(Applause.)